KongZhong Corporation Revises Expectations for Its Third Quarter 2004 Results
27 10월 2004 - 10:02PM
PR Newswire (US)
KongZhong Corporation Revises Expectations for Its Third Quarter
2004 Results BEIJING, Oct. 27 /Xinhua-PRNewswire/ -- KongZhong
Corporation (NASDAQ: KONG), a leading provider of advanced second
generation (2.5G) wireless value- added services in China, today
announced revised guidance for its financial results for the third
quarter ending September 30, 2004. The Company expects
third-quarter revenues to be approximately US$12.0 - 12.3 million.
This compares to the previously provided guidance of 10-20% revenue
growth over the $11.97 million in revenues that were reported for
the second quarter ending June 30, 2004. For the third quarter, the
Company estimates that revenues from 2.5G services will represent
approximately 85% of total revenues and revenues from 2G services
will represent the remaining 15%. This compares to 80% and 20%,
respectively, in the second quarter. The Company attributes the
revised revenue expectation to several factors, including the
roll-out of a new service management platform (MISC) by mobile
operators and increased competition. Additionally, the Company
anticipates expenses to be higher, primarily because of higher
cellphone manufacturer fees and an increase in product development
costs. As a result, the Company anticipates its third quarter net
income to be approximately $5.0 - 5.3 million. This compares with
the $5.3 million net income reported for the second quarter.
KongZhong plans to release its third-quarter results before the US
financial markets open on November 12, 2004. The Company's
management team will conduct a conference call at 11:00 pm Beijing
time (10:00 am Eastern time and 7:00 am Pacific time) on November
12. A webcast of this conference call will be available on the
Company's web site at http://ir.kongzhong.com/overview.htm. About
the Company: KongZhong Corporation is a leading provider of
advanced second generation (2.5G) wireless interactive
entertainment, media, and community services to consumers in China.
The Company delivers a broad range of services, through multiple
technology platforms, which users can access directly from their
mobile phones by choosing an icon embedded in select models of
handsets or from a mobile operator's portal or web site. This press
release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements
include statements regarding our revenues and net income for the
third quarter of 2004. These statements involve risks and
uncertainties and our actual results may differ materially from
those expressed or implied in the statements in this press release.
Potential risks and uncertainties include, but are not limited to,
continued competitive pressures in China's wireless interactive
services market; unpredictable changes in technology and consumer
demand in this market; the state of our relationship with China's
mobile operators; our dependence on the substance and timing or the
billing systems of mobile operators for our performance; and
changes in our operating environment, the character and effects of
which are difficult to predict. For additional discussion of these
risks and uncertainties and other factors that may impact the
reliability of the forward-looking statements in this press
release, please see the documents we file from time to time with
the Securities and Exchange Commission. We assume no obligation to
update any forward-looking statements, which apply only as of the
date of this press release. DATASOURCE: KongZhong Corporation
CONTACT: Richard Wei, Chief Financial Officer, +86-10-8857-6000
x6935, or Fax, +86-10-8857-5891, , Skype ID: richard.wei Web site:
http://www.kongzhong.com/
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